Record No: Res 32130    Version: Council Bill No:
Type: Resolution (Res) Status: Adopted
Current Controlling Legislative Body City Clerk
On agenda: 9/3/2024
Ordinance No:
Title: A RESOLUTION relating to the City Light Department; endorsing City Light's Wholesale Energy Risk Management Policy ("WERM Policy"), which governs wholesale energy, transmission, and ancillary services trading, including renewable energy credits and greenhouse gas offsets; establishing the WERM Policy as the guiding policy for managing risks related to wholesale energy, ancillary services, renewable energy credits, and greenhouse gas offsets within the City Light Department; and superseding Resolution 31616.
Sponsors: Tanya Woo
Attachments: 1. Att 1 - Wholesale Energy Risk Management Policy v2, 2. Att 1 - Wholesale Energy Risk Management Policy v1
Supporting documents: 1. Summary and Fiscal Note, 2. Presentation (3/12/2024), 3. Central Staff Memo and Attachments (7/9/2024), 4. Presentation (7/15/24), 5. Central Staff Memo (8/16/2024), 6. Presentation (8/16/2024)
CITY OF SEATTLE
RESOLUTION __________________
title
A RESOLUTION relating to the City Light Department; endorsing City Light's Wholesale Energy Risk Management Policy ("WERM Policy"), which governs wholesale energy, transmission, and ancillary services trading, including renewable energy credits and greenhouse gas offsets; establishing the WERM Policy as the guiding policy for managing risks related to wholesale energy, ancillary services, renewable energy credits, and greenhouse gas offsets within the City Light Department; and superseding Resolution 31616.
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WHEREAS, to economically provide electricity to its customers, the City Light Department ("City Light") routinely engages in the buying and selling of wholesale energy products; and
WHEREAS, City Light's participation in the wholesale energy markets inherently exposes it to various risks, including market and credit risks; and
WHEREAS, utility industry best practices mandate that City Light adhere to a clear and binding policy statement to effectively manage these risks; and
WHEREAS, these industry best practices further stipulate that such policies should receive approval from an independent governing body, such as City Council; and
WHEREAS, the periodic review and amendment of risk management policies are essential for good governance and oversight; and
WHEREAS, the Wholesale Energy Risk Management Policy was initially adopted by the City Council on September 8, 2008, by Resolution 31053; and
WHEREAS, the Environmental Attributes Management Policy was initially adopted by the City Council on June 7, 2010, by Resolution 31216; and
WHEREAS, the Wholesale Energy Risk Management Policy was updated by the City Council on August 9, 2010, with the passage of Resolution 31230; on May 14, 2012, with the passage of Resolution 31365; and on September 3, 2013, with the passage of Resolution 31467; and
WHEREAS, the Wholesale Energy Risk Management Policy was updated and the Environmental Attributes Management Poli...

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